The New Zealand dollar sold on Thursday, as we continue to struggle with risk appetite. I think that the 0.7250 level is massive support, but quite frankly would not be surprised at all to see buyers somewhere between here and there. There are a lot of minor levels just above that area, so buyers will probably come back if the markets stabilize in general. Remember, the New Zealand dollar is highly sensitive to commodity markets and risk appetite overall, so with that being the case it’s likely that this pair will simply follow stock markets.
NZD/USD Video 16.03.18
If we did breakdown below the 0.7250 level, we probably go looking towards the 0.72 level, and then eventually 0.70 after that. I think that a bounce from here will probably try to reach towards the 0.7350 level, which has been resistive more than once. A break above there could send this market towards the 0.75 level, an area that is going to be very difficult to break above but would lead to more of a “buy-and-hold” scenario. I think there are lot of concerned traders out there when it comes to the world’s economy, so I think that it’s likely that we will continue to be very noisy and choppy. However, if we can get some type of “certainty” with a global risk on move, this pair could finally break out to the upside. In the meantime, be quick to take profits and keep your position size low.
This article was originally posted on FX Empire
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